Can Cisco beat Amazon’s cloud business?
The Hustle

Can Cisco beat Amazon’s cloud business?

Cloud computing costs are on the rise. Cisco is mulling a cheaper alternative that helps companies bring data back to private data centers.

Photo via Smith Collection/Gado/Getty Images

Amazon Web Services (AWS) is firing on all cylinders right now.

The world’s leading cloud computing business saw sales hit ~$15B in the latest quarter (+37% YoY).

While many are happy with the service AWS provides — namely allowing companies to offload data center costs — there is a huge catch.

If a company wants to…

… move data to another cloud provider (e.g., Google, Microsoft), it has to pay an ominous-sounding “egress fee.”

A few weeks ago, Cloudflare put AWS on blast for charging way above market egress fees. Some see this as an anticompetitive move to lock in customers.

Enter Cisco Systems

Per The Information, the $234B manufacturer of network equipment is working on a subscription service that allows companies to move data off of AWS and onto more affordable private data centers.

It is not yet known if the project (internally called Cloud Stack) will actually launch. With cloud spend expected to hit $332B+ this year, it’s probably an easy market to convince your boss to go after.

While many startups prefer the turnkey cloud option, private data centers make more sense for mature firms like Walmart, Netflix, and Apple.

Cisco better move fast

Other old guard tech firms — like Dell, HPE, and VMware — offer services that help users move data off and between clouds.

Back in March 2000, Cisco actually passed Microsoft to become the world’s most valuable firm, with a market cap of $500B.

If successfully launched, Cloud Stack could be a road back to those dot-com bubble highs… without the subsequent crash, of course.

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